New Risk • Jun 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 120% Dividend per share is over 23x cash flows per share. High level of non-cash earnings (25% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (7.2% net profit margin). Announcement • Mar 16
Thye Ming Industrial Co., Ltd., Annual General Meeting, Jun 17, 2026 Thye Ming Industrial Co., Ltd., Annual General Meeting, Jun 17, 2026. Location: no,6, chu kuang 3rd st., daliao district, kaohsiung city Taiwan New Risk • Mar 14
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 150% Cash payout ratio: 275% Dividend yield: 13% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 150% Cash payout ratio: 275% Minor Risk Profit margins are more than 30% lower than last year (8.1% net profit margin). Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: NT$1.91 (vs NT$1.57 in 3Q 2024) Third quarter 2025 results: EPS: NT$1.91 (up from NT$1.57 in 3Q 2024). Revenue: NT$1.85b (down 16% from 3Q 2024). Net income: NT$218.4m (up 16% from 3Q 2024). Profit margin: 12% (up from 8.6% in 3Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Nov 06
Upcoming dividend of NT$2.83 per share Eligible shareholders must have bought the stock before 13 November 2025. Payment date: 01 December 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 11%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.5%). Upcoming Dividend • Aug 19
Upcoming dividend of NT$6.00 per share Eligible shareholders must have bought the stock before 26 August 2025. Payment date: 15 September 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 9.1%. Within top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (3.2%). New Risk • Aug 11
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 7.6% Last year net profit margin: 13% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 108% Cash payout ratio: 165% Minor Risk Profit margins are more than 30% lower than last year (7.6% net profit margin). Reported Earnings • Aug 11
Second quarter 2025 earnings released: EPS: NT$0.07 (vs NT$1.87 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.07 (down from NT$1.87 in 2Q 2024). Revenue: NT$1.99b (down 9.8% from 2Q 2024). Net income: NT$11.9m (down 96% from 2Q 2024). Profit margin: 0.6% (down from 14% in 2Q 2024). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: NT$1.19 (vs NT$1.92 in 1Q 2024) First quarter 2025 results: EPS: NT$1.19 (down from NT$1.92 in 1Q 2024). Revenue: NT$2.08b (down 1.4% from 1Q 2024). Net income: NT$199.1m (down 38% from 1Q 2024). Profit margin: 9.6% (down from 15% in 1Q 2024). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 01
Thye Ming Industrial Co., Ltd. to Report Q1, 2025 Results on May 09, 2025 Thye Ming Industrial Co., Ltd. announced that they will report Q1, 2025 results on May 09, 2025 Reported Earnings • Mar 15
Full year 2024 earnings released: EPS: NT$6.29 (vs NT$5.94 in FY 2023) Full year 2024 results: EPS: NT$6.29 (up from NT$5.94 in FY 2023). Revenue: NT$8.55b (down 7.2% from FY 2023). Net income: NT$1.05b (up 5.9% from FY 2023). Profit margin: 12% (up from 11% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 13
Thye Ming Industrial Co., Ltd., Annual General Meeting, Jun 13, 2025 Thye Ming Industrial Co., Ltd., Annual General Meeting, Jun 13, 2025. Location: no,6, chu kuang 3rd st., daliao district, kaohsiung city Taiwan Reported Earnings • Nov 17
Third quarter 2024 earnings released: EPS: NT$1.12 (vs NT$2.04 in 3Q 2023) Third quarter 2024 results: EPS: NT$1.12 (down from NT$2.04 in 3Q 2023). Revenue: NT$2.19b (down 5.8% from 3Q 2023). Net income: NT$188.1m (down 45% from 3Q 2023). Profit margin: 8.6% (down from 15% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 16% per year. Announcement • Nov 05
Thye Ming Industrial Co., Ltd. to Report Q3, 2024 Results on Nov 12, 2024 Thye Ming Industrial Co., Ltd. announced that they will report Q3, 2024 results on Nov 12, 2024 Upcoming Dividend • Sep 19
Upcoming dividend of NT$5.15 per share Eligible shareholders must have bought the stock before 26 September 2024. Payment date: 15 October 2024. Payout ratio is on the higher end at 75%, however this is supported by cash flows. Trailing yield: 6.7%. Within top quartile of Taiwanese dividend payers (4.4%). Higher than average of industry peers (2.9%). Reported Earnings • Aug 12
Second quarter 2024 earnings released: EPS: NT$1.87 (vs NT$1.84 in 2Q 2023) Second quarter 2024 results: EPS: NT$1.87 (up from NT$1.84 in 2Q 2023). Revenue: NT$2.21b (down 7.3% from 2Q 2023). Net income: NT$313.0m (up 1.5% from 2Q 2023). Profit margin: 14% (up from 13% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 18% per year. Declared Dividend • Aug 12
Dividend increased to NT$5.15 Dividend of NT$5.15 is 29% higher than last year. Ex-date: 26th September 2024 Payment date: 15th October 2024 Dividend yield will be 7.0%, which is higher than the industry average of 3.9%. Sustainability & Growth Dividend is covered by both earnings (76% earnings payout ratio) and cash flows (49% cash payout ratio). The dividend has increased by an average of 7.5% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 27% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Aug 02
Thye Ming Industrial Co., Ltd. to Report Q2, 2024 Results on Aug 09, 2024 Thye Ming Industrial Co., Ltd. announced that they will report Q2, 2024 results on Aug 09, 2024 Reported Earnings • May 08
First quarter 2024 earnings released: EPS: NT$1.92 (vs NT$1.05 in 1Q 2023) First quarter 2024 results: EPS: NT$1.92 (up from NT$1.05 in 1Q 2023). Revenue: NT$2.11b (flat on 1Q 2023). Net income: NT$321.0m (up 83% from 1Q 2023). Profit margin: 15% (up from 8.4% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Buy Or Sell Opportunity • May 06
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 28% to NT$83.60. The fair value is estimated to be NT$69.34, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 16%. Announcement • Apr 28
Thye Ming Industrial Co., Ltd. to Report Q1, 2024 Results on May 03, 2024 Thye Ming Industrial Co., Ltd. announced that they will report Q1, 2024 results on May 03, 2024 Reported Earnings • Mar 21
Full year 2023 earnings released: EPS: NT$5.94 (vs NT$4.07 in FY 2022) Full year 2023 results: EPS: NT$5.94 (up from NT$4.07 in FY 2022). Revenue: NT$9.22b (up 1.7% from FY 2022). Net income: NT$993.8m (up 46% from FY 2022). Profit margin: 11% (up from 7.5% in FY 2022). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 16
Thye Ming Industrial Co., Ltd., Annual General Meeting, Jun 24, 2024 Thye Ming Industrial Co., Ltd., Annual General Meeting, Jun 24, 2024. Location: No. 6, Juguang 3rd St, Daliao Dist. Kaohsiung City Taiwan Agenda: To consider Business Report of 2023; to consider Audit Committee's Review Report; to consider and report the remuneration distribution of employees and directors of 2023; to consider and report the distribution of surplus cash dividends for 2023; to consider 2023 Director's Remuneration Report; to consider Business Report and Financial Report of 2023; to consider Disposition of net income of 2023; and to consider any other matters. New Risk • Dec 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to NT$68.20, the stock trades at a trailing P/E ratio of 11.7x. Average trailing P/E is 16x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 144% over the past three years. Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: NT$2.04 (vs NT$0.93 in 3Q 2022) Third quarter 2023 results: EPS: NT$2.04 (up from NT$0.93 in 3Q 2022). Revenue: NT$2.32b (up 4.8% from 3Q 2022). Net income: NT$340.8m (up 118% from 3Q 2022). Profit margin: 15% (up from 7.0% in 3Q 2022). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 22% per year. Upcoming Dividend • Sep 19
Upcoming dividend of NT$4.00 per share at 6.4% yield Eligible shareholders must have bought the stock before 26 September 2023. Payment date: 19 October 2023. Payout ratio is on the higher end at 85%, however this is supported by cash flows. Trailing yield: 6.4%. Within top quartile of Taiwanese dividend payers (5.4%). Higher than average of industry peers (3.9%). Reported Earnings • Aug 08
Second quarter 2023 earnings released: EPS: NT$1.84 (vs NT$0.95 in 2Q 2022) Second quarter 2023 results: EPS: NT$1.84 (up from NT$0.95 in 2Q 2022). Revenue: NT$2.38b (down 8.2% from 2Q 2022). Net income: NT$308.3m (up 94% from 2Q 2022). Profit margin: 13% (up from 6.1% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improves as stock rises 35% After last week's 35% share price gain to NT$64.60, the stock trades at a trailing P/E ratio of 16.9x. Average trailing P/E is 19x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 124% over the past three years. Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: NT$4.07 (vs NT$4.70 in FY 2021) Full year 2022 results: EPS: NT$4.07 (down from NT$4.70 in FY 2021). Revenue: NT$9.06b (up 2.5% from FY 2021). Net income: NT$680.5m (down 13% from FY 2021). Profit margin: 7.5% (down from 8.9% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 16
Now 22% undervalued Over the last 90 days, the stock is up 3.6%. The fair value is estimated to be NT$49.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 30%. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Director Wen-Fa Lee was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Third quarter 2022 earnings released: EPS: NT$0.93 (vs NT$1.36 in 3Q 2021) Third quarter 2022 results: EPS: NT$0.93 (down from NT$1.36 in 3Q 2021). Revenue: NT$2.22b (up 6.0% from 3Q 2021). Net income: NT$156.0m (down 29% from 3Q 2021). Profit margin: 7.0% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 07
Investor sentiment deteriorated over the past week After last week's 18% share price decline to NT$35.55, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 9x in the Metals and Mining industry in Taiwan. Total returns to shareholders of 20% over the past three years. Upcoming Dividend • Aug 30
Upcoming dividend of NT$4.50 per share Eligible shareholders must have bought the stock before 06 September 2022. Payment date: 07 October 2022. Payout ratio is on the higher end at 94% but the company is not cash flow positive. Trailing yield: 11%. Within top quartile of Taiwanese dividend payers (6.5%). Higher than average of industry peers (8.9%). Reported Earnings • May 17
First quarter 2022 earnings released: EPS: NT$1.29 (vs NT$1.07 in 1Q 2021) First quarter 2022 results: EPS: NT$1.29 (up from NT$1.07 in 1Q 2021). Revenue: NT$2.43b (up 19% from 1Q 2021). Net income: NT$216.1m (up 21% from 1Q 2021). Profit margin: 8.9% (up from 8.8% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 6 highly experienced directors. 3 independent directors (6 non-independent directors). Independent Director Wen-Fa Lee was the last independent director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 28
Full year 2021 earnings released: EPS: NT$4.00 (vs NT$2.10 in FY 2020) Full year 2021 results: EPS: NT$4.00 (up from NT$2.10 in FY 2020). Revenue: NT$8.84b (up 3.6% from FY 2020). Net income: NT$785.8m (up 124% from FY 2020). Profit margin: 8.9% (up from 4.1% in FY 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Nov 18
Upcoming dividend of NT$2.00 per share Eligible shareholders must have bought the stock before 25 November 2021. Payment date: 08 December 2021. Trailing yield: 3.0%. Lower than top quartile of Taiwanese dividend payers (5.1%). Higher than average of industry peers (1.7%). Reported Earnings • Nov 15
Third quarter 2021 earnings released: EPS NT$1.09 (vs NT$0.94 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: NT$2.09b (down 6.1% from 3Q 2020). Net income: NT$218.9m (up 12% from 3Q 2020). Profit margin: 11% (up from 8.8% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 18
Upcoming dividend of NT$1.00 per share Eligible shareholders must have bought the stock before 25 August 2021. Payment date: 24 September 2021. Trailing yield: 2.7%. Lower than top quartile of Taiwanese dividend payers (5.3%). Higher than average of industry peers (1.6%). Reported Earnings • Aug 09
Second quarter 2021 earnings released: EPS NT$0.85 (vs NT$0.23 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: NT$2.41b (up 29% from 2Q 2020). Net income: NT$178.1m (up 272% from 2Q 2020). Profit margin: 7.4% (up from 2.6% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Reported Earnings • May 07
First quarter 2021 earnings released: EPS NT$0.85 (vs NT$0.27 loss in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: NT$2.04b (down 7.7% from 1Q 2020). Net income: NT$178.8m (up NT$236.0m from 1Q 2020). Profit margin: 8.8% (up from net loss in 1Q 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 24
Full year 2020 earnings released: EPS NT$1.68 (vs NT$2.45 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: NT$8.54b (down 13% from FY 2019). Net income: NT$351.6m (down 31% from FY 2019). Profit margin: 4.1% (down from 5.2% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 23
New 90-day high: NT$31.45 The company is up 7.0% from its price of NT$29.50 on 25 November 2020. The Taiwanese market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 11% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: NT$31.40 The company is up 12% from its price of NT$28.00 on 07 October 2020. The Taiwanese market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 24% over the same period. Reported Earnings • Nov 10
Third quarter 2020 earnings released: EPS NT$0.94 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: NT$2.23b (down 16% from 3Q 2019). Net income: NT$196.3m (up 1.8% from 3Q 2019). Profit margin: 8.8% (up from 7.3% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 21
New 90-day low: NT$27.55 The company is down 9.0% from its price of NT$30.15 on 23 July 2020. The Taiwanese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 5.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: NT$28.05 The company is down 8.0% from its price of NT$30.35 on 24 June 2020. The Taiwanese market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 5.0% over the same period.